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Samoan parliament recommends Polynesian Airlines privatization

Polynesian Airlines (OL, Apia Fagali'i) should be privatized a Samoan Parliamentary Finance Committee inquest has recommended. In its report based on findings gathered over the last four years, the inquest said the company's management had shown itself capable of maintaining financial stability and sustainability as shown by its annual profits of USD1.5million for the last two years.

“If it does become privatized, then an advisory committee should be created under the Ministry of Finance to work with the company,” Samoa's Deputy Prime Minister Fonotoe Pierre Lauofo told the Talamua newswire. “Government is also looking at this recommendation,” he added.

In order to maintain the airline's viability, the inquest also recommended local rival Samoa Air (SZB, Apia Faleolo) pay off outstanding debts to Polynesian amounting to USD49,318.63. The debts were incurred for the use of Apia Fagali'i for domestic flights between the islands of Upolu and Savaii.

"We have tried our best to get Chris Langton to come and discuss procedures and charges for using Fagali’i but he never replies to me but replies to the PM accusing us of charging his airline when he was promised unrestricted access to Fagali’i," Polynesian Airlines outgoing Chief Executive Officer (CEO) Taua Fatu Tielu said.

Samoa Air CEO, Chris Langton, disputes the charges arguing that government had granted his airline unrestricted access to Fagali’i thereby negated all fees.

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